Latest news with #AaronPeake
South Wales Argus
2 days ago
- Business
- South Wales Argus
Buy now pay later provider Zilch to launch physical card
Buy Now Pay Later (BNPL) lets shoppers delay paying in full, instead breaking up costs over several weeks or months. Providers have come under new standards since legislation was introduced last month. It came amid concerns that a lack of regulation has led some of the 10 million people who use it to take on too much debt. What is Zilch? Zilch, which has been named one of the fastest-growing in the UK, said it means more of its customers can make payments in stores. Zilch currently offers a virtual card, stored in its app or in people's mobile wallets, which links to customers' debit cards and means they can pay for shopping flexibly. Which retailers work with Zilch? A well as Amazon and Iceland, retailers from Primark and ASOS to Just Eat and eBay use it, and people can choose to pay in full, or spread payments over six weeks or three months. While the virtual card can be used in shops as well as online, Zilch said that nearly 80% of UK adults do not regularly use mobile wallets, so having a physical card will drive more transactions. It is also set to open up buy-now-pay-later options for bigger purchases like home repairs, hotel check-ins, and car rentals. When will Zilch cards be available? The cards will become available to its existing customers from September. The London-based company has grown its customer base to more than five million since launching five years ago and securing authorisation from the UK's Financial Conduct Authority. It reached a valuation of two billion dollars (£1.5 billion) in 2021 and was named one of the UK's fastest-growing fintech unicorns this year (a start-up company that has reached the level of $1 billion in funding). Recommended reading: What is the issue with buy now pay later? But, there are issues with all buy now pay later products, so it pays to be careful, as Aaron Peake, Personal Finance Expert at CredAbility, warns: 'While BNPL can be interest-free, it isn't risk-free. "What's worrying is how quietly it can cause damage, with many people not realising it's real debt until it's too late. "A few small missed payments can knock your credit score or trigger late fees, and in some cases, debt collectors get involved straight away. "What's worse, this could block your chances of getting a mortgage or even a decent phone contract."
Glasgow Times
3 days ago
- Business
- Glasgow Times
Buy now pay later provider Zilch to launch physical card
Buy Now Pay Later (BNPL) lets shoppers delay paying in full, instead breaking up costs over several weeks or months. Providers have come under new standards since legislation was introduced last month. It came amid concerns that a lack of regulation has led some of the 10 million people who use it to take on too much debt. What is Zilch? Zilch, which has been named one of the fastest-growing in the UK, said it means more of its customers can make payments in stores. Zilch currently offers a virtual card, stored in its app or in people's mobile wallets, which links to customers' debit cards and means they can pay for shopping flexibly. Which retailers work with Zilch? A well as Amazon and Iceland, retailers from Primark and ASOS to Just Eat and eBay use it, and people can choose to pay in full, or spread payments over six weeks or three months. While the virtual card can be used in shops as well as online, Zilch said that nearly 80% of UK adults do not regularly use mobile wallets, so having a physical card will drive more transactions. It is also set to open up buy-now-pay-later options for bigger purchases like home repairs, hotel check-ins, and car rentals. When will Zilch cards be available? The cards will become available to its existing customers from September. The London-based company has grown its customer base to more than five million since launching five years ago and securing authorisation from the UK's Financial Conduct Authority. It reached a valuation of two billion dollars (£1.5 billion) in 2021 and was named one of the UK's fastest-growing fintech unicorns this year (a start-up company that has reached the level of $1 billion in funding). Recommended reading: What is the issue with buy now pay later? But, there are issues with all buy now pay later products, so it pays to be careful, as Aaron Peake, Personal Finance Expert at CredAbility, warns: 'While BNPL can be interest-free, it isn't risk-free. "What's worrying is how quietly it can cause damage, with many people not realising it's real debt until it's too late. "A few small missed payments can knock your credit score or trigger late fees, and in some cases, debt collectors get involved straight away. "What's worse, this could block your chances of getting a mortgage or even a decent phone contract."
Daily Mirror
16-05-2025
- Business
- Daily Mirror
DWP state pensioners could get payment boost of up to £715 in 2026
The state pension is set to rise again next year, with the triple lock delivering a 4.1 per cent pay boost last month - but what will the increase be based on in 2026? State pensioners are in for a financial boost next year, with their income set to swell by an extra £715. After the triple lock policy secured a 4.1 per cent pay rise last month, there's been much speculation about which element will drive next year's pension per cent increase. The triple lock ensures state pensions climb by whichever is highest: average earnings growth, inflation, or a minimum of 2.5 per cent. Aaron Peake, personal finance expert at CredAbility, shed light on what the recent stats could mean for pensioners come next year. He remarked: "Right now, earnings growth is slightly ahead of inflation, so that's the frontrunner for determining the rise in 2026. "If we take current wage growth figures of around six per cent, that's the ballpark for next year's state pension increase." Should payments surge by six per cent, the full new state pension would jump from today's £230.25 weekly to £244, adding up to an annual hike of £715. This would also bump up the full basic state pension from £176.45 per week to £187, translating to an extra £548.60 each year. Yet, Mr Peake cautioned that it's still "early days" in figuring out whether inflation or earnings will be the deciding factor for the uplift in next year's pensions. The crucial earnings figure for the triple lock next year comes from data spanning May to July, while the pivotal inflation number is drawn from the year leading up to September, reports the Express. Nevertheless, financial whizz Mr Peake hinted that next year's lift could be even more bountiful than the 4.1 per cent hike state pensioners savoured last month. He insisted: "That would be a welcome boost, but it won't necessarily stretch as far as people hope. Many essentials are still more expensive than they were two or three years ago." Mr Peake advised pensioners to get their finances in shipshape, recommending tactics such as drumming up a monthly budget and scouting for spend-thrift areas that need trimming. For those looking to fatten their savings, Mr Peake pointed out a savvy choice worth considering. He suggested: "A high-interest easy access savings account could be a good option, especially if rates remain fairly high." He explained the benefits of such accounts: "These accounts let you dip in and out if needed, which suits people on a fixed income. "If you don't need access straight away, fixed-rate bonds usually offer better returns, and they give you peace of mind knowing your money is locked away and earning interest." Further, he urged folks to make sure they're not missing out on extra cash by overlooking certain benefits like Pension Credit, which on average is clocking in at a hefty £3,900 a year.
Daily Mirror
05-05-2025
- Business
- Daily Mirror
Sainsbury's Bank customers urged to check Nectar points after NatWest merger
All bank customers have been encouraged to check over their finances Sainsbury's Bank customers have been encouraged to keep an eye out for changes to their Nectar points. In a key change that began on May 1, customers with the bank are being moved over to NatWest. Sainsbury's Bank is transferring all its personal loans, credit cards, and savings accounts over to NatWest. Bank leaders have stated they hope to finish the move over to NatWest systems by the end of 2025. Customers are informed there will be no immediate changes including to Nectar points, which will operate the same. However, industry experts have said there may be alterations to the system further down the line. Personal finance expert Aaron Peake, from the free credit scoring service CredAbility, said that bank bosses may make changes to Nectar points. He explained: "Loyalty schemes are often one of the first things to change after a buyout. "So if you're collecting points, you might want to make the most of them now or look for an alternative card if rewards disappear." He also said there is something customers should do as a first priority. He urged: "The first thing to do is check any recent emails or letters to make sure you're aware of what's happening. If you've got a savings account, personal loan or credit card with Sainsbury's Bank, look at your interest rate, fees and repayment terms to see if anything is set to change. "It's also worth checking your direct debits or standing orders, just in case account details are updated." An update from Sainsbury's Bank reassured customers: "Your Sainsbury's Bank Credit Card remains valid and you can continue to use it instore, in other stores or online. "As we usually would, we will contact you as and when any changes are made to your product." Pernia Rogers, founder of Your Finance Travel Buddy, spoke about what the acquisition means for the wider UK banking scene. She said: "By acquiring Sainsbury's Bank, NatWest is bringing in 1.8 million customers, along with £1.4 billion in personal loans and £1.1 billion in credit card balances. It's another sign of the UK's high street banking market becoming increasingly concentrated, as larger banks continue to absorb smaller players. "That could mean less competition in some areas, which may affect things like choice, pricing and innovation for customers down the line."
Business Mayor
03-05-2025
- Business
- Business Mayor
Sainsbury's Bank customers warned 'don't ignore this letter' after NatWest buyout
Sainsbury's Bank customers have been encourged to make sure their house is in order financially as the group begins its transition to becoming part of NatWest. Starting on May 1, Sainsbury's Bank is to transfer all personal loans, credit cards and savings accounts to NatWest. Bank bosses hope to complete the move over to NatWest systems towards the end of 2025. NatWest has assured there will be no immediate changes. Sainsbury's told customers: 'Your Sainsbury's Bank Credit Card remains valid and you can continue to use it instore, in other stores or online. As we usually would, we will contact you as and when any changes are made to your product.' Nectar points will still operate in the same way and personal loan customers will have the same loan term, payment date and payment amount as before. Aaron Peake, personal finance expert at free credit score service CredAbility, spoke about what customers should do as the major change gets underway. He said: 'The first thing to do is check any recent emails or letters to make sure you're aware of what's happening. If you've got a savings account, personal loan or credit card with Sainsbury's Bank, look at your interest rate, fees and repayment terms to see if anything is set to change. It's also worth checking your direct debits or standing orders, just in case account details are updated.' Mr Peake also encouraged people to keep an eye out for changes to the Nectar points scheme. He said: 'Loyalty schemes are often one of the first things to change after a buyout. 'So if you're collecting points, you might want to make the most of them now or look for an alternative card if rewards disappear.' Speaking more generally, he encouraged all bank customers to do a 'financial health check' of their accounts. He explained: 'Whether your bank's being bought out or not, look at what you're getting in terms of interest on your savings and the cost of borrowing. The banking market is more competitive than it looks on the surface and switching can be easier than you think.' He said Sainsbury's Bank being taken on by NatWest could mark a 'new phase' in the UK banking market. The expert said: 'We've already seen the high street banking landscape change a lot in the last decade, with supermarket banks stepping back and some of the challenger banks struggling to turn a profit. 'This deal shows that the big players like NatWest are now looking to grow by snapping up smaller competitors, especially if it helps them get hold of new customer bases or lending books.' Asked for an update on the move, Sainsbury's Bank said it will keeping customers updated, reaffirming that there will be no immediate changes. The banking takeover comes after Nationwide completed its acquisition of Virgin Money in October 2024, in a £2.9billion deal. Vicky Bullen, CEO at global brand and design consultancy Coley Porter Bell, said that the project to move Sainsbury's Bank customers to being NatWest customers need to be handled with care. She said: 'There will be a need for careful migration so that Sainsbury's customers understand the changes that are happening. It is key that NatWest considers the equity that Sainsbury's brand has with its customers and considers the banking experience that it has delivered over many years. 'It needs to communicate clearly all along the way, considering the whole customer journey and experience, making sure that the NatWest experience demonstrates a step forward for those customers.' READ SOURCE
